Dollar stores carry a range of cheap household products and random merchandise that fit even the tightest family budgets. While inflation has pressured the “everything costs $1 or less” niche, the concept of everyday staples at bargain prices endures nonetheless.
Let's explore the three big dollar store stocks so you can decide if one may fit nicely within your investment portfolio.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Dollar General (NYSE:DG) | $22.4 billion | 2.32% | Food and Staples Retailing |
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Dollar Tree (NASDAQ:DLTR) | $20.9 billion | 0.00% | Food and Staples Retailing |
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Five Below (NASDAQ:FIVE) | $8.9 billion | 0.00% | Specialty Retail |
1. Dollar General
NYSE: DG
Key Data Points
2. Dollar Tree
NASDAQ: DLTR
Key Data Points
Dollar Tree (DLTR +0.11%) is Dollar General's closest competitor by store footprint and annual sales. Dollar Tree acquired Family Dollar in 2015 and 170 stores from the 99 Cents Only chain in 2024. Today, Dollar Tree operates more than 16,000 stores in the United States and Canada and generated about $17.5 billion in revenue during its most recent fiscal year.
Financial performance
Like Dollar General, Dollar Tree has produced good sales growth over the long term. From a margin perspective, Dollar Tree has underperformed its competitor slightly. Between 2016 and early 2023, the company's operating margin ranged from 6.7% to 13.6%. Since then, Dollar Tree's margins and profitability have declined.
Earnings per share fell to -$4.54 in 2024 and plunged to -$17.17 during the first quarter of 2025 before rebounding to $1.61 in the second quarter.
Dollar Tree also cites budget-constrained customers as a primary driver of lower profits. The company is addressing this in part by increasing its selection of high-frequency items -- everyday essentials -- priced below $5.
Stock price performance
Dollar Tree stock has fared better than Dollar General's, but the trend line is going in the wrong direction. In May 2023, you could buy a share of Dollar Tree for about $160. By August 2025, the stock was trading for about $115.
3. Five Below
NASDAQ: FIVE
Key Data Points
Related investing topics
What to consider when investing in dollar store stocks
A lot of dollar store goods may be disposable and inexpensive, but that doesn't mean your investment should be the same. When investing in dollar store stocks, here are five things to think about:
Financial health. Look at variables like gross profit margins, operating margins, and net profit margins to see how efficiently the company is using its revenue. Make sure it's not overly leveraged with debt. Review any plans for share buybacks and dividends.
Competitive landscape. Not all dollar stores are created equal in the same areas. See if stores are concentrated in any one particular state or region, and compare it to potential competitors.
Economic factors. Dollar stores generally perform best during economic downturns. They can make money in good times, of course, but a buy-and-hold investor shouldn't assume that high profits posted during a recession will continue through good times.
Company factors. Is the company expanding, or is it closing stores, and why? Another key retail metric to consider is same-store sales. Review the company's annual report and keep tabs on top officers to make sure there's not excessive turnover in the C-suite.
Investment strategy. Make sure your investment aligns with your own personal goals and risk tolerance. As always, make sure you're buying a stock that will help you build wealth over the long term.
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